Regulations Amending the Special Economic Measures (Russia) Regulations: SOR/2024-200
Canada Gazette, Part II, Volume 158, Number 22
Registration
SOR/2024-200 October 11, 2024
SPECIAL ECONOMIC MEASURES ACT
P.C. 2024-1104 October 11, 2024
Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Regulations Amending the Special Economic Measures (Russia) Regulations under paragraph 4(1)(a)footnote a of the Special Economic Measures Act footnote b.
Regulations Amending the Special Economic Measures (Russia) Regulations
Amendment
1 Item 1019 of Part 1 of Schedule 1 to the Special Economic Measures (Russia) Regulations footnote 1 is repealed.
Coming into Force
2 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
Section 8 of the Special Economic Measures (Russia) Regulations (the Regulations) provides for designated persons to apply to the Minister of Foreign Affairs (the Minister) to have their name removed from the Regulations. The Minister has been provided evidence supporting the removal of one individual from Schedule 1 of the Regulations, as there are no reasonable grounds to maintain the listing.
Background
Situation in Ukraine
On February 24, 2022, Russian President Putin announced “a special military operation” as Russian forces launched a full-scale invasion of Ukraine from Russian and Belarusian territory. Heavy fighting continues in eastern and southern Ukraine. Russia has recently opened a new front in Ukraine’s northeast. As part of its military strategy, Russia continues to fire missiles and kamikaze drone attacks on essential civilian infrastructure.
Experts, including the Organization for Security and Cooperation in Europe Moscow Mechanism fact-finding missions, the Independent International Commission of Inquiry on Ukraine and the United Nations (UN) Office of the High Commissioner for Human Rights, have concluded that Russia is committing serious human rights violations, war crimes, possible crimes against humanity, and conflict-related sexual violence. As of February 2024, the UN Human Rights Monitoring Mission in Ukraine has confirmed that at least 10 000 civilians have been killed and that 20 000 were injured since February 24, 2022. Furthermore, 444 medical facilities and 1 055 educational facilities in Ukraine have been damaged or destroyed by Russia’s military since the invasion. President Putin’s military invasion has been paired with significant malicious cyber operations and disinformation campaigns that falsely portray the West as the aggressor, and claim Ukraine is developing chemical, biological, radiological and/or nuclear weapons with North Atlantic Treaty Organization (NATO) support.
International response
The coalition of countries directly supporting Ukraine includes, but is not limited to, G7 and European countries. This group is working to support Ukraine across several areas, including energy security, nuclear safety, food security, humanitarian assistance, combatting Russian disinformation, sanctions and economic measures, asset seizure and forfeiture, military assistance, accountability, recovery, and reconstruction.
As the war continues, G7 members and partners continue to demonstrate resolve in supporting Ukraine through diplomacy with the broader international community to encourage support for Ukraine and to counter false Russian narratives. President Zelensky’s 10-Point Peace Formula has attracted interest and participation from over 80 countries, which have met three times in 2023 and again in Switzerland in June 2024 for a peace summit. However, Russia consistently uses its position as a permanent member of the United Nations Security Council to block action against its war in Ukraine.
Canada’s response
Following Russia’s illegal occupation and attempted annexation of Crimea in March 2014, the Government of Canada, in tandem with partners and allies, enacted sanctions through the regulations made under the Special Economic Measures Act (SEMA). These sanctions impose dealings prohibitions (an effective asset freeze) on listed individuals and entities supporting or enabling Russia’s violation of Ukraine’s sovereignty. Any person in Canada and Canadians outside Canada are prohibited from dealing in the property of, entering into transactions with, providing services to, or otherwise making goods available to persons listed under Schedule 1, 2 or 3 of the Regulations.
Since 2014, in coordination with its partners, Canada has imposed sanctions on more than 3 000 individuals and entities in Russia, Belarus, Ukraine and Moldova. In addition, Canada has implemented targeted restrictions against Russia and Belarus in financial, trade (goods and services), energy and transport sectors. Canada is part of the Oil Price Cap Coalition, the G7 diamond import ban and ongoing efforts to use the proceeds from Russian sovereign assets to help Ukraine.
Conditions for lifting sanctions
The duration of Canada’s sanctions in the context of Russia’s war in Ukraine is explicitly linked to the peaceful resolution of the conflict and the respect for Ukraine’s sovereignty and territorial integrity within its internationally recognized borders, including Crimea and Ukraine’s territorial sea. Canada has continued to update its sanctions regimes against individuals and entities supporting the conflict in Ukraine, and has delisted persons when warranted, in accordance with relevant sanctions policies and legal frameworks. Similar approaches to the duration and the lifting of sanctions have been adopted by Canada’s like-minded partners, including the United States, the United Kingdom, the European Union and Australia.
The delisting recourse process is an integral part of Canada’s robust sanctions framework and supports the fair and transparent application of sanctions. This includes ensuring that only persons who meet the criteria under the Regulations are listed. Applications for delisting are considered on a case-by-case basis.
Designated persons may apply to the Minister to have their name removed from Schedule 1, 2 or 3 of the Regulations. A detailed description of the relevant circumstances and reasons supporting an application for delisting are requested. Following receipt of an application, the Minister must decide within 90 days whether there are reasonable grounds to recommend to the Governor in Council that the applicant’s name be removed from the Regulations. Information on the delisting application process is available on Global Affairs Canada’s website (Listed persons [international.gc.ca]).
Objective
To safeguard the integrity of Canada’s sanctions regime by delisting individuals and entities when there are reasonable grounds to do so, taking into account the object and purpose of the Regulations, and the circumstances of designated persons.
Description
The amendment removes Denis Valentinovich Kamyshev from Schedule 1 of the Regulations, as there are no reasonable grounds to maintain the listing.
Regulatory development
Consultation
Global Affairs Canada engages regularly with other like-minded governments regarding Canada’s approach to sanctions implementation.
With respect to this amendment, public consultation would not have been appropriate.
Modern treaty obligations and Indigenous engagement and consultation
No modern treaty obligations were identified, as the amendment does not take effect in a modern treaty area.
Instrument choice
Regulations are the sole method to remove persons subject to sanctions in Canada. No other instrument could be considered.
Regulatory analysis
Benefits and costs
In the absence of this amendment, the individual would remain on the Schedule of the Regulations and be faced with restrictions from travelling to Canada and having business transactions with Canadians. This amendment will remove those restrictions providing a theoretical benefit to the individual and any Canadian or Canadian entity that may wish to engage in dealings with the individual that would have otherwise been prohibited. There will be no direct costs to businesses or the Government because of the delisting, and the removal of these prohibitions is not considered a risk to Canada’s security objectives.
Canadian banks and financial institutions are required to comply with sanctions. They will do so by removing the individual from their existing monitoring systems, which may result in a compliance cost.
Small business lens
Analysis under the small business lens concluded that the amendment will not impact Canadian small businesses.
One-for-one rule
The one-for-one rule does not apply, as there is no incremental change in the administrative burden on businesses and no regulatory titles are repealed or introduced.
Regulatory cooperation and alignment
The amendment is not related to a work plan or commitment under a formal regulatory cooperation forum.
Effects on the environment
The amendment is unlikely to result in important environmental effects. In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
Given the targeted nature of this amendment, no gender-based analysis plus (GBA+) impacts have been identified.
Rationale
Section 8 of the Regulations provides for designated persons to apply to the Minister to have their name removed from the Regulations. Canada considers the delisting recourse process to be important for a robust sanctions framework and crucial to the fair application of sanctions.
On September 29, 2022, Denis Valentinovich Kamyshev was listed under Schedule 1 of the Regulations as a senior official of an entity in the Russian financial sector listed under Schedule 1, Part 2 of the Regulations. Based on the information the individual submitted as part of their delisting application, the Minister determined that the individual does not meet the criteria to be listed under Schedule 1 of the Regulations, and that their name should be removed.
Implementation, compliance and enforcement, and service standards
The amendment comes into force on the day it is registered.
The name of the individual will be removed from the Consolidated Canadian Autonomous Sanctions List. This will help to facilitate compliance with the Regulations.
Contact
Sanctions Bureau
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone (toll-free): 1‑833‑352‑0769
Telephone (local): 343‑203‑3975
Email: sanctions@international.gc.ca